'IffffifflTIPIIt*'!'*'"""" 


UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LffiRARY 


SENATE 

LAW  LIBRARY 

UKIVFRSITY  OF  CALIFORNIA 

LOS  ANGELES 

SENATE  BILL.  No.  812 


INTRODUCED  BY  SENATOR  WELCH, 
February  19,  1907. 


Referred  to  Committee  on  Finance. 


To  Provide  for  the  Issuance  and  Sale  oi*^  State  Bonds  to  Create 
A  Fund  for  the  Acquisition  by  the  Board  of  State  Harbor 
Commissioners  of  a  Necessary  Area  for  a  Tidal  Basin  fob 
Wharves,  Piers,  Harbors  and  Appurtenances  in  the  City 
and  County  of  San  Francisco;  to  Create  a  Sinking  Fund 
for  the  Payment  of  Said  Bonds  ;  and  Defining  the  Duties  of 
State  Officers  in  Relation  Thereto;  Making  an  Appropria- 
tion OF  One  Thousand  Dollars  for  the  Expense  of  Print- 
ing Said  Bonds;  and  Providing  for  the  Submission  of  This 
Act  to  a  Vote  of  the  People. 

The  people  of  the  State  of  California,  represented  in  eenate  and  assembly^ 

do  enact  as  follows: 

Section  1.     For  the  purpose  of  providing  a  fund  for  the 

2  payment  of  the  indebtedness  authorized  to  be  incurred  by  the 

3  board  of  state  harbor  cominissioners  for  the  acquisition  of  the 

4  necessary  area  for  a  tidal  basin  extending  the  area  of  India 

5  basin  on  the  water  front  of  the  city  and  coimty  of  San  Fran- 

6  cisco,  as  provided  in  an  act  entitled  "An  act  to  authorize  and 

7  direct  the  board  of  state  harbor  commissioners  to  institute  con- 

8  demnation  proceedings  against  certain  property  north  of  India 


9  basin  and  extending;  to  Islais  creek  in  the  city  and  county  of 

10  San    Francisco,    and   extending   their   jurisdiction   over   the 

11  same,"  the  state  treasurer  shall,  immediately  after  the  issu- 

12  ance  of  the  proclamation  of  the  governor,  provided  for  in  sec- 

13  tion  10  hereof,  prepare  one  thousand  suitable  bonds  of  the 

14  State  of  California,  in  the  denomination  of  one  thousand  dol- 

15  lars  each.     The  whole  issue  of  said  bonds  shall  not  exceed  the 

16  sum  of  one  million  dollars,  and  said  bonds  shall  bear  interest 

17  at  the  rate  of  four  per  centum  per  annum,  from  the  time  of 

18  the  sale  thereof,  and  both  principal  and  interest  shall  be  pay- 

19  able  in  gold  coin  of  the  present  standard  value,  and  they 

20  shall  be  payable  at  the  office  of  the  state  treasurer,  at  the 

21  expiration  of  nineteen  years  from  their  date,  subject,  how- 

22  ever,  to  redemption  by  lot  as  in  this  act  hereinafter  provided. 

23  Said  bonds  shall  bear  date  the  second  day  of  January,  A.  D. 

24  nineteen  hundred  and  nine,  and  shall  be  made  payable  on 

25  the  second  day  of  January,  nineteen  hundred  and  twenty- 

26  eight  A,  D.     The  interest  accruing  on  such  of  said  bonds  as 

27  are  sold,  shall  be  due  and  payable  at  the  office  of  the  state 

28  treasurer  on  the  second  day  of  January,  and  on  the  second 

29  day  of  July,  of  each  year  after  the  sale  of  the  same ;  provided, 

30  that  the  first  payment  of  interest  shall  be  made  on  the  second 

31  day  of  January,  A.  D.  nineteen  hundred  and  ten,  on  so  many 

32  of  said  bonds  as  may  have  been  theretofore  sold.    At  the 

33  expiration  of  nineteen  years  from  the  date  of  said  bonds,  all 

34  bonds  sold  shall  cease  to  bear  interest  and  likewise  all  bonds 

35  redeemed  by  lot  shall  cease  to  bear  interest  as  in  this  act  pro- 

36  vided,  and  the  state  treasurer  shall  call  in,  forthwith  pay  and 

37  cancel  the  same,  out  of  moneys  in  the  India  Basin  sinking  fund 

38  provided  for  in  this  act,  and,  he  shall  on  the  first  Monday  of 

39  Januar}^,  nineteen  hundred  and  twenty-eight,  also  cancel  and 

40  destroy  all  bonds  not  theretofore  sold.    All  bonds  issued  shall 

41  be  signed  by  the  governor,  and  countersigned  by  the  controller, 

42  and  shall  be  endorsed  by  the  state  treasurer,  and  each  shall 

43  have  the  seal  of  the  state  stamped  thereon.    Each  bond  shall 

44  contain  a  clause  that  it  is  subject  to  redemption  by  lot  after 

45  the  year  nineteen  hundred  and  eighteen. 

■7   - 


—  3  ^ 

Sec.  2.     Interest  coupons  shall  be  attached  to  each  of  said 

2  bonds,  so  that  such  coupons  may  be  removed  without  injury 

3  to  or  mutilation  of  the  bond.     Said  coupons  shall  be  consecu- 

4  tively  numbered,  and  shall  be  signed  by  the  state  treasurer. 

5  But  no  interest  on  any  of  said  bonds  shall  be  paid  for  any 

6  time  which  may  intervene  between  the  date  of  any  of  said 

7  bonds  and  the  issue  and  sale  thereof  to  a  purchaser. 

Sec.  3.     The  sum  of  one  thousand  dollars  is  hereby  appro- 

2  priated  to  pay  the  expense  that  may  be  incurred  by  the  state 

3  treasurer  in  having  said  bonds  prepared.     Said  amount  shall 

4  be  paid  out  of  the  San  Francisco  harbor  improvement  fund 

5  on  controller's  warrants,  duly  drawn  for  that  purpose. 

Sec.  4.     When  the  bonds  authorized  to  be  issued  under  this 

2  act  shall  be  duly  executed,  they  shall  be  by  the  state  treasurer 

3  sold  at  public  auction  to  the  highest  bidder  for  cash,  in  such 

4  parcels  and  numbers  as  said  treasurer  shall  be  directed  by  the 

5  governor  of  the  state,  under  seal  thereof,  after  a  resolution 

6  requesting  such  sale  shall  have  been  adopted  by  the  board  of 

7  state  harbor  commissioners ;  but  said  treasurer  must  reject  any 

8  and  all  bids  for  said  bonds,  or  for  any  of  them,  which  shall  be 

9  below  the  par  value  of  said  bonds  so  offered ;  and  he  may,  by 

10  public  announcement  at  the  place  and  time  fixed  for  the  sale, 

11  continue  such  sale,  as  to  the  whole  of  the  bonds  offered,  or  any 

12  part  thereof  offered,  to  such  time  and  place  as  he  may  select. 

13  Due  notice  of  the  time  and  place  of  sale  of  all  bonds  must  be 

14  given  by  said  treasurer  by  publication  in  two  newspapers 

15  published  in  the  city  and  county  of  San  Francisco,  and  also 

16  by  publication  in  one  newspaper  published  in  the  city  of  Oak- 

17  land,  and  by  publication  in  one  newspaper  published  in  the 

18  city  of  Los  Angeles,  and  by  publication  in  one  newspaper 

19  published  in  the  city  of  Sacramento,  once  a  week  during  four 

20  weeks  prior  to  such  sale.     The  costs  of  such  publication  shall 

21  be  paid  out  of  the  San  Francisco  harbor  improvement  fund, 

22  on  controller's  warrants  duly  drawn  for  that  purpose.     The 

23  proceeds  of  the  sale  of  such  bonds  shall  be  forthwith  paid 

24  over  b}'  said  treasurer  unto  the  treasury,  and  must  be  l)y  him 

25  kept  in  a  separate  fund  to  be  known  and  designated  as  the 


2()  "India  Hasin   Fiiiul"  and  nuist  be  used  exclusively  for  the 

27  ac(]uisition  area  described  in  the  act  referred  to  in  section  1 

28  hereof.    Drafts  and  Avarrants  upon  said  fund  shall  be  drawn 

29  upon  and  shall  be  paid  out  of  said  fund  in  the  same  manner  as 

30  drafts   and   warrants   are  drawn   ujion   and   paid  out  of  the 

31  San  Francisco  harbor  improvement  fund. 

Sec.  5.     For  the  payment  of  the  principal  and  interest  of 

2  said  bonds  a  sinking  fund,  to  be  known  and  designated  as  the 

3  "India  Basin  Sinking  Fund"  shall  be,  and  the  same  is  hereby 

4  created  as  follows;  to  wit:  The  state  treasurer  shall,  on  the 

5  first  day  of  each  and  every  month  after  the  sale  of  said  bonds, 

6  take  from  the  San  Francisco  harbor  improvement  fund  such 

7  sum  as,  multiplied  by  the  time  the  bonds  then  sold  and  out- 

8  standing  at  the  time  said  treasurer  shall  so  take  said  sum  from 

9  said  San  Francisco  harbor  improvement  fund,  less  the  amount 
10.  theretofore  taken  therefrom  for  said  purpose;  and  he  shall 

11  place  the  sum  in  the  India  basin  sinking  fund  created  by  this 

12  act.     Said  state  treasurer,  shall  on  controller's  warrants  duly 

13  drawn  for  that  purpose,  employ  the  moneys  in  said  sinking 

14  fund  in  the  purchase  of  bonds  of  the  United  States,  or  of  the 

15  State  of  California,  or  of  the  several  counties  or  municipali- 

16  ties  of  the  State  of  California,  which  said  bonds  shall  be  kept 

17  in  a  proper  receptacle,  appropriately  labeled;  but  he  must 
18-9  keep  always  on  hand  a  sufficient  amount  of  money  in  said 

20  sinking  fund  with  which  to  pay  the  interest  on  such  of  the 

21  state  bonds  herein  provided  to  be  issued  as  may  have  thereto- 

22  fore  been  sold.     And  to  provide  means  for  the  payment  of 

23  interest  on  the  bonds  that  may  be  sold  and  outstanding,  said. 

24  treasurer  shall  monthly  take  from  the  San  Francisco  harbor 

25  improvement  fund,  and  pay  into  said  "India  basin  sinking 

26  fund"  an  amount  equal  to  the  monthly  interest  then  due  on 

27  all  bonds  then  sold,  delivered  and  oustanding.     The  board  of 

28  state  harbor  commissioners  are  hereby  authorized  and  directed 

29  by  the  collection  of  dockage,  tolls,  rents,  wharfage  and  cranage 

30  to  collect  a  sum  of  money  sufficient  for  the  purposes  of  this 

31  act,  over  and  above  the  amount  limited  by  section  two  thou- 

32  sand  five  hundred  and  twenty-six  of  the  Political  Code  of  the 


—  5  — 

33  State  of  California.    Between  the  first  and  tenth  day  of  Xovem- 

34  ber,  in  the  year  nineteen  hundred  and  eighteen  and  between 

35  the  first  and  tenth  day  of  November  of  each  year  thereafter 

36  until  the  maturity  of  said  bonds  the  said  treasurer  shall,  in 

37  the  presence  of  the  governor,  proceed  to  draw  by  lot  such 

38  an  amount  of  bonds  as  shall  be  requisite  to  exhaust  as  nearly 

39  as  may  be  the  amount  in  said  sinking  fund  at  that  time,  and 

40  shall  thereupon  and  before  the  tenth  day  of  December  follow- 

41  ing,  give  notice  by  public  advertisement  to  be  inserted  twice 

42  a  week  for  two  weeks  in  two  newspapers  published  in  the  city 

43  and  county  of  San  Francisco,  and  also  in  one  newspaper  pub- 

44  lished  in  the  city  of  Oakland,  and  also  in  one  newspaper  pub- 

45  lished  in  the  city  of  Los  Angeles,  and  also  in  one  newspaper 

46  published  in  the  city  of  Sacramento,  stating  the  number  of 

47  bonds  so  drawn  and  that  the  principal  of  said  bonds  shall  be 

48  paid  on  presentation  to  the  treasurer  on  or  before  the  second 

49  day  of  January,  following,  and  that  from  and  after  such  last 

50  named  date,  aU  interest  upon  bonds  thus  drawn  shall  cease, 

51  and  it  shall  be  the  duty  of  the  treasurer  as  soon  as  said  bonds 

52  so  drawn  by  lot  are  surrendered  to  him  and  paid  to  cancel 

53  the  same,  and  the  interest  coupons  thereon,  and  each  year 

54  beginning    with    the    year    nineteen    hundred    and    eighteen, 

55  the  said  treasurer  shall,  in  the  manner  aforesaid,  proceed  to 

56  draw  by  lot  such  an  amount  of  bonds  as  shall  be  requisite  to 

57  exhaust  as  nearly  as  may  be  the  amount  in  said  sinking  fund, 

58  and  proceed  in  the  manner  hereinabove  stated.    After  the 

59  payment  of  all  said  bonds,  the  surplus  or  balance  remaining 

60  in  said  sinking  fund,  if  any  there  be,  shall  forthwith  be  paid 

61  into  the  San  Francisco  harbor  improvement  fund.     At  the 

62  time  of  the  respective  drawings  by  lot,  as  aforesaid,  and  also 

63  at  the  maturity  of  said  state  bonds,  said  treasurer  shall  sell^ 

64  the  United  States  or  other  bonds  then  in  said  sinking  fund, 

65  at  governing  market  rates,  after  advertising  the  sale  thereof 

66  '  in  the  manner  hereinbefore  provided  for,  the  sale  of  bonds 

67  hereby  authorized  to  be  issued,  and  shall  use  the  proceeds  for 

68  the  payment  of  such  bonds  as  may  be  drawn  hy  lot.  and  at  the 

69  maturity  of  said  bonds  outstanding  shall  pay  and  redeem  said 


—  6  — 

70  matured  outstanding  bonds  out  of  said  moneys  in  said  fund 

71  in  extinguishment  of  said  bonds  on  controller's  warrants  duly 

72  drawn  for  that  purpose. 

Sec.  6.     The  state  controller  and  the  state  treasurer  shall 

2  keep  full  and  particular  account  and  record  of  all  their  pro- 

3  ceedings  under  this  act,  and  they  shall  transmit  to  the  governor 

4  an  abstract  of  all  such  proceedings  thereunder,  with  an  annual 

5  report,    to   be   by   the   governor   laid   before   the   legislature 

6  biennially;  and  all  books  and  papers  pertaining  to  the  matter 

7  provided  for  in  this  act  shall  at  all  times  be  open  to  the  inspec- 

8  tion  of  any  party  interested,  or  the  governor,  or  the  attorney 

9  general,  or  a  committee  of  either  branch  of  the  legislature,  or 

10     a  joint  committee  of  both,  or  any  citizen  of  the  state. 
• 

Sec.  7.     It  shall  be  the  duty  of  the  state  treasurer  to  pay  the 

2  interest  of  said  bonds,  when  the  same  falls  due,  out  of  the 

3  sinking  fund  provided  for  in  this  act,  on  controller's  warrants 

4  duly  drawn  for  that  purpose. 

Sec.  8.     This  act,  if  adopted  by  the  people,  shall  take  effect 

2  on  the  thirtj^-first  day  of  December,  A.  D.  nineteen  hundred 

3  and  eight,  as  to  all  its  provisions  except  those  relating  to  and 

4  necessary  for  its  submission  to  the  people,  and  for  returning, 

5  canvassing,  and  proclaiming  the  votes,  and  as  to  said  excepted 

6  provisions  this  act  shall  take  effect  immediately. 

Sec.  9.     This  act  shall  be  submitted  to  the  people  of  the 

2  State  of  California  for  their  ratification  at  the  next  general 

3  election,  to  be  holden  in  the  month  of  November,  A.  D.  nine- 

4  teen  hundred  and  eight,  and  all  ballots  at  said  election  shall 

5  have  printed  thereon  and  at  the  end  thereof,  the  words,  "For 

6  the  India  Basin  act",  and  in  a  separate  line  under  the  same 

7  words  "Against  the  India  Basin  act",  and  opposite  said  lines 

8  there  shall  be  left  spaces  in  which  the  voters  may  make  or 

9  stamp  a  cross  to  indicate  whether  they  vote  for  or  against  the 

10  said  act,  and  those  voting  for  said  act,  shall  do  so  by  placing 

11  a  cross  opposite  Avords  "For  the  India  Basin  Act",  and  all 

12  those  voting  against  the  said  act  shall  do  so  by  placing  a 

13  cross  opposite  the  words  "Against  the  India  Basin  Act".    The 


14  governor  of  this  state  shall  include  th*^  submission  of  this  act 

15  to  the  people,  as  aforesaid,  in  his  proclamation  calling  for  said 

16  general  election. 

Sec.  10.     The  votes  cast  for  or  against  this  act  shall  be 

2  counted  returned  and  canvassed  and  declared  in  the  same  man- 

3  ner  and  subject  to  the  same  rules  as  votes  cast  for  state  offi- 

4  cers ;  and  if  it  appear  that  said  act  shall  have  received  a  major- 

5  ity  of  all  the  votes  cast  for  and  against  it  at  said  election  ns 

6  aforesaid,  then  the  same  shall  have  effect  as  hereinbefore  pro- 

7  vided,  and  shall  be  irrepealable  until  the  principal  and  inter- 

8  est  of  the  liabilities  herein  created  shall  be  paid  and  discharged, 

9  and  the  governor  shall  make  proclamation  thereof;  but  if  a 

10  majority  of  the  votes  cast  as  aforesaid  are  against  this  act  then 

11  the  same  shall  be  and  become  void. 

Sec.  11.     This  act  may  be  known  and  cited  as  the  **  India 
2    basin  act". 

Sec.  12.     All  acts  and  parts  of  acts  in  conflict  with  the  pro- 
2    visions  of  this  act  are  hereby  repealed. 


UC  SOUTHERN  REGlO'. ML  l  l- 

ll'lllllll'l  "'!>  I 


000  348  778 


